EXECUTIVE SUMMARY
The supply of residential projects in Tbilisi and Batumi has decreased, while having grown in Kutaisi
In 2019, around 198 residential projects were completed in Tbilisi. In contrast with the previous year, that number fell by 4%. Delivered residential developments in total comprised 15,257 flats added to the market. Around 2 million sq m of residential
area is expected to be added to the city’s supply.
Batumi is the second largest contributor to large-scale developments. In 2019, 19 residential projects were completed and an area of 237,098 sq m was added to the supply, meaning a 21% decrease compared to 2018. Currently, developers are working on an additional 100 developments in total.
In 2019, 10 development projects were completed in Kutaisi, which enlarged the city’s supply by 37 K sqm. The figure has more than tripled compared to 2018.
There is a decreasing trend in the number of transactions in Tbilisi and Kutaisi, while the figure increased in Batumi.
In 2019, the number of residential transactions slightly decreased in Tbilisi from 36 K to 34 K units. The market for newly built flats turned out to be especially exposed to mortgage regulatory changes, as a 7.5% fall was observed in the number of transactions on new projects. In accordance with the market size, 64% is held by newly built flats (USD 1,05 million), of which 15% (USD 152 K) refers to the premium segment.
The same trend was seen in Kutaisi in terms of a change in the number of transactions. The figure sharply decreased (25%) for newly built flats, yet slightly increased (3%) for old ones. The economy segment holds the largest share in new, as well as
old, projects.
A different picture was seen in Batumi, where the number of residential transactions peaked at 11 K units. Unlike Tbilisi, the market for newly built flats was resistant to changes to the mortgage regulatory system.
Unlike Batumi, sale prices have been stable in Tbilisi and Kutaisi.
During recent years, the weighted average sale price by segment remained stable in both new and old projects in Tbilisi and Kutaisi.
A different picture has been seen in Batumi, where the weighted average sale price of newly built flats has increased by 11% to USD 824 per sq m. This rise is largely attributable to the project developed by Orbi Group. It is notable that the sale price of
premium newly built flats outweighed those in Tbilisi.
There is a slight fluctuation in the weighted average sale prices in Rustavi, Zugdidi and Gori.
In 2019, the weighted average sale price of newly built flats decreased by 15% in Gori from USD 434 per sq m in 2018 to USD 370 per sq m. In accordance with old flats, the figure insignificantly changed from USD 328 per sq m to USD 333 per sqm.
The average sale price of newly built flats in Zugdidi amounted to USD 448 per sq m from USD 349, depicting a 28% growth rate. A similar, strong (27%) growth rate was observed in old flats.
A different picture has been seen in Rustavi, where sale prices decreased by 10% in new projects, while growing by 3% in old ones.
More Information: https://drive.google.com/drive/folders/1x6tzQXQG3_M3MgqC8TfXrcFYs-ckoJ6Y
